\f3. {Based on Ehapter 3} [n this question you will need to evaluate the vari- ous predictions of the Solow model using the data in the spreadsheet. The spreadsheet includes data for about 1E5 countries for the following vari- ables {a} Real GDP per capita I for 1990 and 201-5. and {b} The investment rate [cf inour model] averaged over the '25- year period.2 The spreadsheet has the countries arlready sorted by RDP pc for 1590 [Le poores to richest in 1991]} {a} {bi Evaluate the prediction of aolisolate convergence in lGDP per capita, i.e. did initially poorer countries grow faster than the initially rich ones? Make sure you explain your methods\" label your axes properly1 and include the relevant graph. Divide the countries in to ve equal groups based on their RDP per person in 1991] (Le. lIGroup 1 will have the 3.5 poorest1 Group '2 the next....]. Examine the relationship between investment and growth for each of these groups. Did countries that have higher investment rates experience higher growth within each group? 1Why have I asked you to group countries based on their initial RGDP pc? For each of these groups1 test the prediction of conditional room genee. Unlike absolute nonvergenee, conditional convergence predicts that among otherwise similar countries1 poorer ones will grow faster. To do this rank all the countries based on their investment rate. Now divide them into Eye roughly equal sized groups based on their in- vestment rate [ie the first group have the lowest investment rates and the fifth group will have the highest investment rate}. For each group' repeat {a}. What do you nd within each group? Do your plots support this prediction? 1Why or Why not? Make sure you include the scatter-plots when you submit your home- work. You do not need to inelude data... 2Note that for some countries you may not have sLl the variables. Drop times oountries Emm the exercise